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Tax Investment plan is something which is a systematic process of investment of money to save more tax. Investment should be made in a proper systematic manner so that it will save tax as well as give good returns in future. Example: - ELSS funds, NPS Investment, Home Loan Investment, PPF investments, ULIP Plans etc.
Any person can plan for tax savings, which ultimately give them tax benefit as well as financial security for future. Investment in various scheme helps the person to save in a systematic manner. It helps a good habit of saving for future.
Firstly it gives tax benefits to individuals as well as corporations.
Further it investments will start yielding returns when need them most.
Further, the investment will act as a corpus fund to meet the short-term requirements.
The Tax Investment gives security at the time of retirement
Traditional Life Investments
Mutual Funds etc
Investment in CSR activities
Always pay expenses through cheque or through digital mode
Show depreciation of assets properly
Deductions of income tax of employees at source